Text of Senator Charles Schuman's Letter to Colin L. Powell Secretary of State

Dear Secretary Powell:

I am writing to ask your assistance with a problem that has plagued New York City for years. As host to the United Nations, New York City is home to thousands of diplomats, consulate members and their staffs. Unfortunately, many of these guests choose not to pay local property taxes, arguing that foreign governments do not have to pay taxes to local authorities. However, New York City has discovered that many of these nations have been renting out parts of their consulates for commercial use - making the properties taxable.

Yesterday, New York City filed suit against four foreign governments that owe the city over $100 million in back property taxes. The nation of Turkey owes $70 million in back property taxes and interest to the city. The Philippines owe New York City 17.7 million, India owes $16.4 million, and Mongolia owes $2 million. Other countries owe millions of dollars in property taxes as well.

I intend to add provisions to future foreign aid bills to collect 110 percent of the unpaid New York City property taxes from these debtor nations. New York City is still recovering from the 9/11 attacks, money is tight, and we need every single tax dollar we are owed. We simply can no longer allow these countries to refuse to pay the taxes due on the many buildings they own in New York.

You may recall that just two days before terrorist attacks of September 11, 2001, Senator Clinton and I added language to the foreign operations bill to collect overdue New York City parking tickets from diplomats. With your help, New York City was eventually able to reach an equitable solution on that matter, which was a problem that vexed New York City officials for decades.

Thank you for your work on this issue and for your attention to this request.

Sincerely,
Charles E. Schumer
United States Senator